(1) Cannabis credit co-op membership consists of licensed marijuana businesses, industrial hemp businesses, and entities that provide goods or services to licensed marijuana businesses and that provide documentation to the co-op of an inability to get comparable services from a bank or credit union, that are qualified and elected to membership and that pay any entrance fee; except that the co-op shall perform due diligence on each applicant for membership, including background checks and investigations, as specified in section 11-33-126 before the co-op grants the applicant membership in the co-op.

(2) (a) Co-op membership is limited to only entities that own, operate, or are licensed marijuana businesses in good standing with the executive director of the state licensing authority created in section 44-11-201, industrial hemp businesses, and entities that provide goods or services to licensed marijuana businesses and that provide documentation to the co-op of an inability to get comparable services from a bank or credit union.

(b) An individual is not qualified to be a member of a co-op, regardless of whether the individual is licensed, including pursuant to section 44-11-401 (1)(e) or 44-12-401 (1)(e), to own, operate, manage, or be employed by a licensed marijuana business, either as a sole proprietor or any other form of ownership that gives the individual sole control over the licensed marijuana business.

(3) Once a member no longer owns or operates a licensed marijuana business or industrial hemp business, or no longer provides goods or services to a licensed marijuana business, the member is no longer qualified to be a member and shall promptly terminate its deposits with and repay its loans from the co-op.

(4) (a) Each co-op shall disclose to its members or prospective members that:

(I) Federal law does not authorize financial institutions, including marijuana financial services cooperatives, to accept proceeds from activity that is illegal under federal law, such as that from licensed marijuana businesses;

(II) Deposits with and the capital of the co-op are:

(A) Subject to seizure by the federal government;

(B) Not federally insured;

(C) Not backed by the full faith and credit of the state of Colorado; and

(III) It is not the obligation of the state of Colorado to defend the co-op or its deposits and capital in the event of a seizure.

(b) A co-op shall make the disclosures:

(I) On its website;

(II) In each advertisement or offer of services;

(III) Before accepting an applicant as a member; and

(IV) Before a member accepts a loan from the co-op.